Corporate workout refers to financial rescue of a firm that is outside formal bankruptcy and insolvency law.[1] Also known as out-of-court debt restructuring, corporate workout practices aim to remedy or avoid foreclosure and bankruptcy.[2] The debtors, creditors as well as the main shareholder and bondholders voluntarily participate in the workouts in order to make rearrangements concerning financial investments and rescheduling and restructuring debt. As a way of response to corporate crisis, corporate workout arrangements were widely seen in the aftermath of the Asian financial crisis in 1997.

See also

References

  1. ↑ Azmi, Ruzita. "Corporate Workout: The Corporate Debt Restructuring Committee Revisited." International Corporate Rescue 8:5 (2011).
  2. ↑ Brown, Bowman, Brian Nordwall, and Michael L. Ashner. "Corporate, Securities and Banking Law Aspects of Workouts." U. Miami L. Rev. 32 (1977).

Further reading

  • Low, Linda. "Asian crisis, corporate and financial restructuring, and transformation of traditional Chinese enterprises." Rethinking Chinese Transnational Enterprises: Cultural Affinity and Business Strategies 7 (2002): 240.
  • Mako, William P. "Emerging-Market and Crisis Applications for Out-of-Court Workouts: Lessons from East Asia." Corporate Restructuring (2005): 99.
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